What happens when floating-rate coupons sink below zero?

The short answer: Both bondholders and issuers could be in an awkward spot.
Many corporate bonds have “floors” in place, which means their coupon payments can’t go below zero. But in a recent note, S&P Global Market Intelligence calls attention to …

The short answer: Both bondholders and issuers could be in an awkward spot.

Many corporate bonds have "floors" in place, which means their coupon payments can't go below zero. But in a recent note, S&P Global Market Intelligence calls attention to a host of floating-rate securities that don't have coupon floors.

Continue reading: What happens when floating-rate coupons sink below zero?

Kuroda on the adverse effects of NIRP and a ‘quiet riot’ in JGBs

The “quiet riot” thing is from the title of a Jefferies note on Tuesday.

Here’s what they see:

Continue reading: Kuroda on the adverse effects of NIRP and a ‘quiet riot’ in JGBs

The "quiet riot" thing is from the title of a Jefferies note on Tuesday.

Here's what they see:

Continue reading: Kuroda on the adverse effects of NIRP and a ‘quiet riot’ in JGBs